Load shed service for import information session
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Load Shed Service for Import Information Session. Market Services April 17, 2014. Agenda. LSSi Product Proposed Modifications to the Contract The RFP Process and Next Steps. Public. LSSi Product - Purpose. Load Shed Service for Imports (LSSi) is an ancillary service product

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Load Shed Service for Import Information Session

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Load Shed Service for Import Information Session

Market Services

April 17, 2014


Agenda

  • LSSi Product

  • Proposed Modifications to the Contract

  • The RFP Process and Next Steps

Public


LSSi Product - Purpose

  • Load Shed Service for Imports (LSSi) is an ancillary service product

  • Developed by the AESO as part of the efforts to enable intertie transactions to the levels indicated by the T-Reg

  • LSSi is provided by loads that agree to be tripped following the frequency drop caused by the sudden loss of imports coming across the AB-BC and MATL

  • LSSi allows for arrest and recovery from frequency decay, and preserves system stability

  • LSSi is used to allow additional scheduled imports to access the Alberta market without compromising system reliability

Public


LSSi Product - Payment Structure

  • Three-part payment structure:

    • The availability payment: paid to LSSi providers in the hours when they choose to offer LSSi, currently set at $5/MWh

    • The arming payment: paid to LSSi providers in the hours when their LSSi facilities are armed, a fixed price agreed to between the AESO and each individual LSSi provider

    • The tripping payment: paid to LSSi providers in the event that their armed load is tripped off when intertie trip causes the frequency to drop, currently set at $1000/MWh

Public


LSSi Product – Usage Statistics

  • The first LSSi contract became effective operationally in November 2011

  • Currently a total of 479 MW from 7 providers

  • Summary Data of Intertie Restoration Facilitated by LSSi – April 1, 2012 to March 31, 2013

Public


Proposed Modifications


Proposed Modification: T-85 Lock-Down

  • Issue: possible invalidation of T-85 ATC allocation causes additional cost and uncertainty to importers and potentially reduces import activity

    • Allocation of ATC occurs at T-85 based on the available LSSi volume at the time

    • Arming of LSSi occurs at around T-20

    • Available LSSi volume may drop between T-85 and T-20

  • T-85 lock-down of LSSi availability reduces the uncertainty around the ATC allocation at T-85


Proposed Modification: Manual Trip

  • Issue: the feature of LSSi design not explicit in the contract

  • Adding ‘manual trip’ allows the contract term to more accurately reflect the design of the product

Public


Proposed Modification: No Availability Payment When Not Able to Increase Import Schedules

  • Issue: LSSi was offered and the availability payment was made to the providers in situations where LSSi could not have been used increase import scheduling capability

  • Number of hours ATC limited to zero:

Public


Proposed Modification – Clarity in Compliance

  • Issue: unnecessary risks to LSSi Agreements

  • The LSSi Agreement could be enhanced by distinguishing non-compliance based on providers’ compliance efforts and the impact of the non-compliance on the system

  • Offer greater clarity regarding the relationship between non-compliance violations and LSSi Agreement terminations

    • help providers better understand the AESO’s expectations of compliance practices

    • reduce unnecessary risks to LSSi Agreements

Public


Next Steps

  • Comments on report due April 25

  • AESO will post responses to stakeholder comments May 16th

  • RFP in Q3


The RFP Process

Public


Thank You


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